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DECISION No

DECISION No. 06/2002/QD-TTg OF JANUARY 7, 2002 APPROVING THE MASTER PLAN ON THE DEVELOPMENT OF VIETNAM�S RAILWAY COMMUNICATIONS AND TRANSPORT SECTOR TILL 2020

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Considering the proposal of the Ministry of Communications and Transport (Report No. 4434/GTVT-KHDT of December 27, 2000) and the evaluation opinion of the Ministry of Planning and Investment (Official Dispatch No. 5952/BKH-CSHT of September 4, 2001),

DECIDES:

Article 1.- To approve the master plan on the development of Vietnam�s railway communications and transport till 2020 with the following principal contents:

1. The master plan�s objectives:

The Master Plan on the development of the railway communications and transport till 2020 shall serve as basis for the investment in building and developing rational and uniform railway networks nationwide, with scales suitable to each territorial region, forming centers of combined railway transport infrastructures and services, facilitating the exploitation of the existing potentials and developing the capability of the railway communications and transport sector.

To step by step build and develop Vietnam�s railway communications and transport sector into a synchronous and modern one in terms of railway lines, stations, storehouses, station platforms, cargo yards, information and signals; establishments for maintenance and manufacture of spare parts and/or materials in service of infrastructures and the system of transport means, loading and unloading equipment, and the mechanical engineering system for building, assembly and repair of transport means in order to meet the cargo and passenger transportation demands with the higher and higher quality, reasonable costs, convenience, safety, speed and efficiency.

b/ To meet the need to industrialize and modernize the railway communications and transport sector on the basis of bringing into full play internal resources and making investment in priority and key areas with every available capital source, aiming to ensure sustainable development, enhance the capacity of the managerial system, expand the provision of various services, ensure traffic safety, promote and raise the sector�s existing economic and technical strengths.

2. Contents and scale of major components of the Master Plan

a/ The railway communications and transport should account for 25% - 30% of tons and ton/km, 20%-25% of passengers and passenger/km of the total transportation volume of the entire communications and transport branch. By 2020, the urban passenger transportation by train shall reach at least 20% of the passenger volume in Ha Noi and Ho Chi Minh cities.

b/ To maintain the existing railway gauges, including 1,000 mm and 1,435 mm gauges and integrated gauges (1,000 mm and 1,435 mm) and upgrade and transform them up to technical standards. If new railway sections and lines are built, they must be compatible and easily connectable with the existing railway gauge in such regions. In particular, the high-speed North-South railway line shall be built with the gauge of 1,435 mm.

c/ To develop railway transport means along the direction of diversification and rational structure, renew the tractive power and the conveyance power along the direction of modernization, reduction of costs and prices; to attach importance to developing high-speed trains, self-propelled trains, container trains� To apply advanced technologies to transportation and building of new means in order to increase the cargo train speed to at least 80 km per hour and the passenger train speed to at least 120 km per hour by 2020.

d/ The major technical standards shall be specified by the Minister of Communications and Transport after reaching agreement with the concerned bodies and comply with current regulations.

e/ Investment in infrastructures towards 2020:

- The period till 2010:

+ To upgrade the existing rail lines up to the prescribed technical standards and build a number of new sections, lines and loop-lines leading to key ports, industrial parks and economic zones throughout the country and connect them with the existing lines; to give priority to enhancing the capacity and modernizing the North-South axis line and the East-West axis line; to electrify the Hanoi - Hai Phong line, which shall serve as basis for developing the electric tractive power in the next period.

+ To build the urban railway in Hanoi and Ho Chi Minh cities at the same time with building new and synchronous stations, locomotive and carriage repair and modification establishments.

+ To renew the systems of: optic fiber communication, digital electronic switchboards, semi-automatic then automatic signaling, concentrated electric recording, automatic train stops, automatic cross-road warning� To participate in the general telecommunications market so as to make full use of the capacity of the railway sector.

+ To plan and re-arrange for development establishments which manufacture construction materials, mechanical engineering accessories and spare parts in service of the repair, maintenance and building of railway infrastructures.

+ To upgrade and build so as to step by step complete the system of passenger and cargo stations in the key regions; to give special attention to passenger stations in the hearts of Hanoi and Ho Chi Minh cities, which function as the central railway stations, the hubs for transshipment and connection of transport means as well as the multi-functional service centers.

- The period till 2020:

To complete the upgrading of the railway lines up to the national and regional standards, to build a new double-track line and electrify the Hanoi - Vinh and Sai Gon - Nha Trang lines; continue building new railway lines so as to form a synchronous and complete railway network up to modern standards. Along the North - South axis, besides the existing Thong Nhat railway line, it is necessary to build a separate 1,435 mm double-track line for high-speed North-South passenger trains, aiming to reduce the traveling time between Hanoi and Ho Chi Minh city to under 10 hours, which can be connectable with the international railway line. To continue building belt railroads and railways in the inner areas of Hanoi and Ho Chi Minh cities as well as a number of other big cities so as to form a complete and synchronous urban traffic network.

The estimated investment capital amount needed for railway infrastructures by 2020 is VND 98,051 billion.

Of which, the 2001-2010 period shall need VND 23,530 billion and the 2010- 2020 period - VND 74,521 billion.

(The list of investment projects in the 2001-2020 period is included in the appendix attached to this Decision).

f/ Investment in the transport business development till 2020:

- The mechanical engineering network of the railway industry for building, repair and maintenance of transport means and equipment must be rationally distributed, capable of meeting the transport demands and consistent with the general development of the branch as well as the plannings of the concerned localities and branches.

- From now till 2010, to gradually abolish antiquated and technically backward small-capacity locomotives, import the ones of large capacity of between 1,500 and 2,200 horse powers; import synchronous diesel locomotive-overhaul chains so as to overhaul locomotives of all types before proceeding to assembling domestic locomotives.

- To promote internal resources in building domestic high-quality and modern passenger carriages, building cargo wagons of many categories for domestic use and export to some regional countries.

- To build new self-propelled trains.

- To modernize establishments engaged in repairing and building locomotives and carriages.

- To strongly apply advanced information technologies to the transport management and administration.

- To reorganize, improve the skills of, train and re-train the contingent of officials, employees and workers in the railway sector.

- The demand for investment capital till 2020 is VND 62,870 billion.

Of which, the 2001-2010 period shall need VND billion 12,870 and the 2010-2020 period - VND 50,000 billion.

Article 2.- Regarding investment and major solutions and policies in order to meet the development demands under the approved master plan

a/ The Ministry of Communications and Transport shall submit to the Prime Minister the medium-term and long-term projects enclosed with the proposals on the creation of investment capital, policies on capital mobilization and use and resources of each project, aiming to quickly overcome the situation of backwardness and lack of synchronism and incompatibility with technical standards of railways so as to meet the industrialization and modernization needs, ensuring the sustainable development of Vietnam�s railway sector.

b/ Groups of major solutions and policies:

- In order to speed up the development of the railway sector, a large amount of capital should be invested within a short time in the key projects:

- For each specific project, the railway sector may borrow credits from the Development Assistance Fund or other credit sources with interest rates compliant with the preferential policy in each period for investment in developing infrastructures, renewing transport means or specialized equipment, and applying new technologies.

- The State shall adopt socio-economic policies through freights, price subsidies, price supports, etc. for loss-suffering railway lines in service of people�s daily life, security and defense.

- Vietnam Railway is a national railway organization, which should build an organizational system and an overall mechanism after the model of a State corporation.

Article 3.- Management and organization of the implementation of the master plan

a/ The Ministry of Communications and Transport shall take responsibility before the Prime Minister for managing and organizing the implementation of the master plan on the development of Vietnam�s railway communications and transport sector till 2020, and approving the detailed plans on the railway development in each specialized branch, each period and each region in line with the approved master plan.

b/ The Ministry of Planning and Investment, the Ministry of Finance, various ministries and branches shall base themselves on their respective functions and tasks to assume the prime responsibility or coordinate with one another in performing the tasks related to the approved master plan.

c/ The provinces and cities across the country, especially the localities where railways run through, shall have the responsibility to make contributions and protect railways.

d/ The Railway Union of Vietnam shall have the responsibility to manage and exploit the infrastructures, transport means, industrial establishments, railway exploitation equipment and services according to the approved master plan and current regulations.

Article 4.- This Decision takes effect 15 days after its signing.

Article 5.- The Minister of Communications and Transport, the Minister of Planning and Investment, the ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the general director of the Railway Union of Vietnam, the presidents of the People�s Committees of the concerned provinces and centrally-run cities shall have to implement this Decision.

Prime Minister
PHAN VAN KHAI

APPENDIX

THE LIST OF RAILWAY INFRASTRUCTURES TO BE DEVELOPED TILL 2020

(Issued together with the Prime Minister�s Decision No. 06/2002/QD-TTg of January 7, 2002)

Ordinal number

List

Investment demand (million VND)

Notes

2001-2010

2011-2020

TOTAL

23,530,075

74,521,605

A

Upgrading of the existing railway lines

14,017,675

1

Hanoi - Ho Chi Minh City line

10,308,480

2

Hanoi - Lao Cai line

1,620,000

3

Hanoi - Hai Phong line

1,123,500

4

Hanoi - Dong Dang line

294,695

5

Kep - Ha Long line

572,000

6

Dong Anh - Quan Trieu line

60,100

7

Kep - Luu Xa line

38,900

B

Building of new sections and lines

643,400

3,591,000

1

Ha Long - Cai Lan

140,800

2

Yen Vien - Pha Lai

411,600

3

Railways leading to port clusters

91,000

65,000

4

Sai Gon - Vung Tau railway

1,509,200

5

Sai Gon - Loc Ninh railway

968,800

6

Sai Gon - My tho - Can Tho railway

648,000

Partial investment

7

Thai Nguyen - Yen Bai railway

400,000

Partial investment

8

Di An - Chon Thanh - Dac Nong

Bauxite exploitation

9

Vung Anh - Mu Da

Depending on the Trans-Asia railway

10

Dong Ha - Lao Bao

C

Urban, key, inner-city railways

8,869,000

42,446,105

1

Hanoi urban railway:

Yen Vien-Van Dien overhead railway

5,000,000

2

Ho Chi Minh city urban railway

Binh Trieu overhead railway

3,869,000

3

Hanoi key railway

6,511,008

4

Hanoi inner-city railway

9,516,872

Partial investment

5

Ho Chi Minh city key railway

11,640,225

6

Ho Chi Minh inner-city railway

14,778,000

D

Capacity raising, modernization

28,484,500

1

Hanoi - Ho Chi Minh city railway

14,078,000

2

North-South railway of 1,435 gauge

6,808,000

Partial investment

3

Hanoi - Yen Vien - Pha Lai - Hai Phong railway

3,350,000

4

Hanoi - Lao Cai Railway

4,248,500